Reference no: EM132195669
Assignment : Current Examples of Market Structures
In the previous assignment and the assigned readings for this module, you analyzed industries, identified their market structures, and determined how management decisions are made on the basis of the market structure.
In this assignment, you will learn to determine the industry classification of specific market structures and industries.
Tasks:
Identify an article on any one of the following management decisions commonly made in an organization:
o Cutting costs
o Enhancing business operations
o Increasing productive capacity using technology
You can consult sources such as the Wall Street Journal, Financial Times,Bloomberg Markets, the Economist, US News and World Report, and the Argosy University online library resources.
After reading the article, respond to the following:
o Identify the unifying theme in the article. Does the theme pertain to economics and the reasoning for cutting costs, enhancing business operations, or increasing productive capacity using technology? How?
o Evaluate the situation that you think proposes the most significant consequences for society. What are the consequences that you foresee?
o If you were the regulator of the industry analyzed in the article, how would you decide the validity of the company policy in the article and why?
Discussion-Value of Money
Business decisions are based on the time value of money. Bonds, stocks, loans, and other business investments are valued by determining the present value of an expected cash flow, which is also called discounting the cash flow. The time value of money finds considerable application in the decision-making processes of a business.
In this assignment, you will apply the basic principles of the time value of money to business decisions.
Tasks:
Part 1:
You are the chief financial officer of a firm. The firm has an expected liability (cash outflow) of $2 million in ten years at a discount rate of 5%.
o Calculate the amount the firm would need on the present date as savings to cover the expected liability.
o Calculate the amount the firm would need to set aside at the end of each year for the next ten years to cover the expected liability.
Part 2:
Using the Argosy University online library resources, identify an article that demonstrates the application of time value of money principles to a business decision.
o Explain the specific business decision that management made after computing this value. Analyze how management used the concept of the time value of money principles to make this decision.
o Analyze factors other than the time value of money that management considered or should have considered in reaching the business decision.
Submission Details:
o By the due date assigned, post your responses in a minimum of 500 words to this Discussion Area. Support your assumptions with reputable source material.
o Through the end of the module, read and respond to at least two other classmates' posts. While responding, consider the implications for the firms selected in applying the concept of the time value of money, such as present value (PV) and future value (FV). What would happen if the firms do not apply the concepts of the time value of money to their finances?
Write your initial response in 300-500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation.